Hong Kong is in the process of issuing tokenized green bonds and has hired the Bank of China, Credit Agricole, Goldman Sachs and HSBC to work on the issuance, according to a Bloomberg report. The HK$800m ($102m) digital green bond issuance is part of a pilot tokenization program. The news is based on investor calls by the banks planned from today onwards. [Update: Now officially confirmed.]
The digital bond issuance and ownership will be logged on the Goldman Sachs Digital Asset Platform (GS DAP), the enterprise blockchain that debuted with a €100m tokenized bond issuance for the European Investment Bank (EIB) in late November 2022. Goldman was one of two banks, alongside Thailand’s Krungthai Bank, involved in Hong Kong green bond experiments with the BIS Innovation Hub as part of Project Genesis 2.0.
In January, the Hong Kong Monetary Authority (HKMA) confirmed to Ledger Insights that it was planning a tokenized bond issuance following an institutional sale of $5.75 billion in green bonds that were conventionally issued.
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